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Cisco Systems Reports Fourth Quarter and Fiscal Year 2004 Earnings

  • 11 August, 2004 10:30

<p>Please see below the Cisco Systems Q4 earnings release. A Cisco spokesperson is available to speak about trends in the Australian market, as Cisco Australia leads the region in IP Telephony, having sold more than 150,000 IP phones, and is a key player in security, WLAN, optical and SAN.</p>
<p>Please let me know if you would like to speak to a Cisco spokesperson and I will arrange for an interview to be set up.</p>
<p>Regards,
Alicia</p>
<p>Alicia Cannon
Consultant
Ph: (02) 9362 8533
Mob: 0407 427 803</p>
<p>For Immediate Release</p>
<p>Note: All figures are in US Dollars unless otherwise indicated. This media release was issued in the US yesterday</p>
<p>Cisco Systems Reports Fourth Quarter and Fiscal Year 2004 Earnings</p>
<p>Q4 Net Sales: $5.9 billion (26.0% increase year over year; 5.4% increase quarter over quarter)
Q4 Earnings Per Share: $0.20 GAAP; $0.21 pro forma
FY'04 Net Sales: $22.0 billion (16.8% increase year-over-year)</p>
<p>SAN JOSE, Calif., August 10, 2004 - Cisco Systems, Inc., the worldwide leader in networking for the Internet, today reported its fourth quarter and fiscal year results for the periods ended July 31, 2004.</p>
<p>Net sales for the fourth quarter of fiscal 2004 were $5.9 billion, compared with $4.7 billion for the fourth quarter of fiscal 2003, an increase of 26.0 percent, and compared with $5.6 billion for the third quarter of fiscal 2004, an increase of 5.4 percent.</p>
<p>Net income for the fourth quarter of fiscal 2004, on a generally accepted accounting principles (GAAP) basis, was $1.4 billion or $0.20 per share, compared with $982 million or $0.14 per share for the fourth quarter of fiscal 2003, and compared with $1.2 billion or $0.17 per share for the third quarter of fiscal 2004. Pro forma net income for the fourth quarter of fiscal 2004 was $1.5 billion or $0.21 per share, compared with $1.1 billion or $0.15 per share for the fourth quarter of fiscal 2003, and compared with $1.4 billion or $0.19 per share for the third quarter of fiscal 2004.</p>
<p>A reconciliation between net income on a GAAP basis and pro forma net income is provided in a table immediately following the Pro Forma Consolidated Statements of Operations.</p>
<p>Net sales for fiscal 2004 were $22.0 billion, compared with $18.9 billion for fiscal 2003, an increase of 16.8 percent.</p>
<p>Net income for fiscal 2004, on a GAAP basis, was $4.4 billion or $0.62 per share, compared with $3.6 billion or $0.50 per share for fiscal 2003.</p>
<p>Pro forma net income for fiscal 2004 was $5.3 billion or $0.76 per share, compared with $4.3 billion or $0.59 per share for fiscal 2003.</p>
<p>"This was a record-breaking quarter for Cisco on a number of financial and operational levels, including generating the highest GAAP and pro forma net income and earnings per share in the company's history," said John Chambers, Cisco president and CEO. "The investments we've made in emerging markets around the world, coupled with continued innovation in our core business and advanced technologies, are generating record results."</p>
<p>Chambers continued, "Fiscal 2004 has truly been a breakaway year for Cisco. Our strategy has produced solid results across multiple categories, with profitable growth generation resulting in a year-over-year increase in quarterly revenue of 26 percent, strong balance across market segments and geographies, as well as clear momentum in multiple product categories and our Advanced Technology markets."</p>
<p>Financial Highlights</p>
<p>*Cash flows from operations were $2.1 billion for the fourth quarter of fiscal 2004, compared with $1.5 billion for the fourth quarter of fiscal 2003, and compared with $2.4 billion for the third quarter of fiscal 2004. Cash flows from operations were $7.1 billion for fiscal 2004, compared with $5.2 billion for fiscal 2003.</p>
<p>*Cash and cash equivalents and total investments were $19.3 billion at the end of fiscal 2004, compared with $20.7 billion at the end of fiscal 2003, and compared with $18.9 billion at the end of the third quarter of fiscal 2004.</p>
<p>*During the fourth quarter of fiscal 2004, Cisco repurchased 90 million shares of common stock at an average price of $22.36 per share for an aggregate purchase price of $2.0 billion. For fiscal 2004, Cisco repurchased 408 million shares of common stock at an average price of $22.30 per share for an aggregate purchase price of $9.1 billion.
Days sales outstanding (DSO) in accounts receivable at the end of the fourth quarter of fiscal 2004 were 28 days, compared with 26 days at the end of the fourth quarter of fiscal 2003, and compared with 27 days at the end of the third quarter of fiscal 2004.</p>
<p>*Inventory turns were 6.4 in the fourth quarter of fiscal 2004, compared with 6.8 in the fourth quarter of fiscal 2003, and compared with 6.3 in the third quarter of fiscal 2004.</p>
<p>"We saw solid progress during the quarter on key operational milestones," said Dennis Powell, Cisco CFO. "We marked the ninth consecutive quarter of pro forma net income exceeding $1 billion, generated more than $2 billion in cash flow from operations for the second consecutive quarter, and are close to achieving our productivity targets with pro forma operating expenses to revenue at 36 percent."</p>
<p>Business Highlights</p>
<p>*Cisco announced the purchase of the intellectual property and select other assets, and the hiring of a majority of the engineering team, from privately held Procket Networks, Inc. Cisco also announced the acquisitions of privately held Actona Technologies, Inc. and Parc Technologies, Ltd.</p>
<p>*Cisco introduced the Cisco Carrier Routing System (CRS-1), certified by Guinness World Records as the world's highest-capacity Internet router, capable of scaling to 92 terabits of bandwidth capacity as well as providing the industry's first true 40-Gbps interface.</p>
<p>*Cisco announced that BellSouth plans to deploy Cisco 7600 Series routers in its expansion of its Metro Ethernet service portfolio.</p>
<p>*The Boeing Company plans to enhance its existing data network infrastructure and migrate its voice, video and data networks to a single, converged communications network based on the Cisco IP Communications product portfolio for its global enterprise, which includes more than 150,000 employees in 48 states and 70 countries.</p>
<p>*Cisco announced plans to integrate network infrastructure and security systems with Trend Micro's worm and virus technologies, vulnerability assessment and real-time outbreak-prevention capabilities to help customers protect their networks from security attacks.</p>
<p>*Cisco introduced the Wireless LAN Services Module (WLSM) for the Cisco Catalyst® 6500 Series.</p>
<p>*Cisco introduced the Metropolitan Mobile Network solution, which consists of Cisco Aironet® Series technology and 3200 Series routers with the integrated Wireless Mobile Interface Card, to provide broadband wireless access across a city to public sector agencies.</p>
<p>*IBM and Cisco announced an initiative to help organisations of all sizes integrate and implement converged voice, video and data systems.</p>
<p>*Cisco added the SMB Select Partner designation to its Channel Partner Program to differentiate, recognise and reward its channel partners who focus on selling into the small and medium-sized business market.</p>
<p>*Cisco introduced the Global Services Alliance program, which enables Cisco and its key participating partners to provide co-branded technical support services to customers requiring consistent information technology support capabilities on a global scale.</p>
<p>*Comcast is offering its customers the Linksys® Wireless-G Cable Gateway as part of its Comcast Home Networking Platform, making it easy for households to share a cable broadband connection wired or wirelessly throughout the home.</p>
<p>For further information please contact
Peter Witts
Cisco Systems
Public Relations Manager
Australia &amp; New Zealand
Ph 61 2 8446 5272
Mob 61 401 890 385</p>

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